Days after government announced implementation of the Real Estate (Regulation and Development) Act, the largest public lender in the country has cut the home laon rates by 25 basis points in a bid to woo homebuyers.
The new lending rates of 8.35 per cent will be applicable for only affordable housing loans which are under Rs 30 lakh.
For male borrowers, the limited period offer is valid till July 31 and the reduction is 20 bps to 8.40 per cent, SBI Managing Director for national banking, Rajnish Kumar said.
The new rate reduction of 25 per cent for women will be for the salaried borrowers and for the non-salaried, it will be 20 bps cut.
Similar will be the rates applicable to male salaried and non-salaried borrowers.
One percentage point is 100 basis points (bps).
"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," he said.
The new rates will be effective tomorrow.
"This is giant leap to give a fillip to the affordable housing segment keeping the Prime Minister's vision of providing 'housing for all' by 2022," Kumar said, adding that the lender now offers the lowest rates in the industry.
With a home loan book of Rs 2.23 trillion, SBI leads the segment with 25-26 per cent market share, Kumar said further.
However, he is of the view that the new offer may not push up its market share significantly as 45 per cent of its Rs 2.23 trillion home loan book is under Rs 30 lakh bracket.
(with inputs from PTI)